Glanbia Ireland has announced a number of changes to its mechanism to manage the rate of growth in peak milk supplies from next year.

Among the new measures announced is a €6.7 million Voluntary Peak Reduction scheme that will be funded by Glanbia Co-operative Society.

Commenting, co-op chairman John Murphy said that Glanbia Ireland has listened carefully to feedback from a series of meetings with the co-operative’s representative structure and other stakeholders.

He said that the board and management is acutely conscious of the impact that the delay in bringing a new cheese plant into production is having on individual farm families.

"Our existing facilities and cooperation with other processors can facilitate some milk volume growth at peak, but not at the level that matches our farmers’ production plans for next year,” the chairman said.

Sean Molloy, chief agribusiness growth officer at Glanbia Ireland, explained the background to the Voluntary Reduction scheme, stating:

“A number of suppliers have said that they would be willing to commit to scaling back their supply volume at peak.

"This will free up capacity for other suppliers, which can be allocated via a Reserve Pool,” he added.

Under the Peak Supply Management Policy announced recently:

It is planned to issue letters with peak allocations to suppliers next week.

Glanbia Ireland will continue to engage with individual suppliers to address their concerns surrounding the new policy.